A Step-by-Step Guide to Starting a Business

Taking the Very First Step

For the hustlers out there, starting a business often involves more than just coding in your dorm room, finding world-class co-founders, and having investors or customers show up at your door. While those stories exist, the reality usually requires a good deal of hustle—and investors respect that.

There’s no shortage of inspirational presentations about entrepreneurship, but tangible, actionable next steps are harder to find. This guide provides exactly that: a clear path to get started today.

 

Step 0: Assemble Your Team

The Importance of a Strong Team

Your team is crucial. Early-stage investors often evaluate your team more than your idea because they know pivots are inevitable. Ideally, your co-founders should have complementary skill sets, unique industry insights, and shared values.

But don’t let the absence of a perfect team stop you. Start building your business; traction will help you recruit better team members later.

Legal Paperwork: Avoid Future Disputes

If you have co-founders, finalize ownership percentages now. It’s much easier to have these conversations when your company is small. Use free templates from top law firms to draft agreements.

 

Step 1: Form Your Entity

Why Incorporate?

Forming a legal entity protects you from personal liability. Start with an LLC—it’s cheaper and simpler than a C-Corp. You can convert to a C-Corp later when securing Angel or VC funding.

  • Cost: Around $100.
  • How: Services like MyLLC.com can help.

Pro Tip: Incorporate in Delaware. It’s industry-standard and offers advantages in legal and tax processes.

Key Documents

  1. Cap Table: Define founder ownership percentages.
  2. Board of Directors: Decide early who’s on your board. Avoid putting all founders on it; this is unusual and can create issues later.

 

Step 2: Establish Your Professional Presence

Get a Domain and Professional Email

A professional email (e.g., yourname@yourcompany.com) is non-negotiable. No one takes you seriously if you’re using a generic Gmail address.

Even if you don’t have the perfect name yet, just start. Big brands like Snapchat, Facebook, and Uber all rebranded later.

 

Step 3: Build Your Website

Every business needs a website, even if your product is physical. It provides a place for customers to learn about your product and make purchases.

Overcome Common Misconceptions:

  • “I don’t know how to code!” Use drag-and-drop builders like Squarespace or WordPress.
  • “It’s too expensive!” Plans start at under $10/month.

Tip: Link your website to the domain you bought in Step 2.

 

Step 4: Create Your Social Media Accounts

Claim handles on key platforms early, even if you don’t plan to post actively right away. As you grow, focus on the platform your target audience uses most.

 

Step 5: Network Relentlessly

Your network is one of your most valuable assets. Attend events, connect with potential co-founders, and pitch your idea. Pitch competitions, in particular, are a great way to secure funding, improve your presentation skills, and meet investors.

Quote:
“Your network is your net worth.” – A rich person in business school

 

Step 6: Embrace Iteration

The Inevitable Pivot

Most startups pivot. Groupon started as The Point, a platform for group problem-solving. You’ll learn more about your space as you gain traction—don’t get too attached to your first idea.

 

Step 7: Understand Intellectual Property (IP)

IP Is Often Overrated

While trade secrets and continuous innovation are more practical for startups, litigation over IP can be expensive and hard to win—even for giants like Apple.

NDAs and Sharing Your Idea

  • Don’t ask investors to sign an NDA; it’s a red flag.
  • Share your idea freely to get feedback. Execution matters far more than the idea itself.

 

Step 8: Handle Rejection Gracefully

Rejections from investors or accelerators are part of the process. Use feedback to build relationships and refine your pitch. Persistence often pays off.

 

Closing Thought: Hustle and Execute

Success in entrepreneurship is all about taking action. Start small, learn quickly, and don’t let perfectionism hold you back. Remember, it’s all about execution.